Worldwide Financial Crisis Does Not Affect Azerbaijan’s Agrarian Sector: Minister

Business Materials 5 November 2008 16:29 (UTC +04:00)

Azerbaijan, Baku, 5 November / Trend , corr. U.Ismayilova /"Currently, the worldwide financial crisis did not affect the agricultural sector in Azerbaijan," Ismat Abbasov, the Azerbaijani Agricultural Minister, said to Trend via a telephone on 5 November.

"At present, Azerbaijan implements arrangements to reduce dependence from outside and the Government annually allocates subsidies and benefits to farmers for this purpose," Abbasov said.

According to the minister, the Government intends to continue to subsidy the agrarian sector in 2009, as well.

In 2007, the Azerbaijani Government issued a decree 'On State support to agricultural manufacturers' to develop the agricultural sphere in the country. Some AZN 80mln was allocated from the state budget after increase of tariffs on energy carriers and AZN 56 out of the sum was directed to pay for fuels and lubricants and AZNA 24 - for 50% of fertilizing. Some AZN 40 is accounted for each hectare, and AZN 26 - for 300kg fertilizer to cultivate nearly 900,000 hectares of lands.

In November 2007, the Azerbaijani Cabinet of Ministers ordered to allocate subsidies in the amount of AZN 40 to grain manufacturers per each sowing hectare. This order envisages to simulate the grain production, increase interesting of farmers in the sphere, as well as to provide bread demand due to domestic grain production.

In August 2008, under the President's decree about AZN 25mln was allocated from the reserve fund to the Agrolising OJSC to implement arrangements directed to render additional aid to agricultural manufacturers. The sum is due to cover 50 percentage of the cost of wheat and 70 percentage soct of fertilizer for grain producers.

On 5 November, the official currency rate is 0,8078 AZN/USD.

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